The New Gold - I

The global monetary system needs a financial and technological innovation.

Peter Bernstein looked at gold from a historical aspect in his book ‘The Power of Gold, the history of an obsession’. From the start of Egyptian era in 3100 BC when Pharaoh’s ruled to the Roman Empire, the author illustrated how gold slowly and steadily became the real money.

The current stage of gold also gives it an aura, but this time it’s the public that has been enamored by it not the central bankers. I don’t know how Robert M. Solow will connect gold with economic growth, but just like Benjamin Disraeli, he would say the same thing, “Gold is not a cause of growth but a consequence of it”

Solow proved that only technological progress leads to real growth. A closer look at Bernstein’s history from a Solowian perspective based on technological innovations and other financial innovations reveals interesting aspects about gold.